Economic Themes (2011) 49 (4) 14, 727-740
Dragan Milovanović
Abstract: Decline in trust and the withdrawal of foreign investors from the Serbian capital market contributed to the decline in value of turnover on the BSE. Increased risk of investing in the Serbian capital market focused investors on less risky investments, and in that respect and less profit. In such circumstances, the Serbian capital market, the investment alternative is to invest in mutual funds. Mutual funds carry a slightly higher risk than savings in the bank, but as a rule, and higher yields on invested funds. The paper analyzes investment funds in the capital markets of Serbia, in terms of types, methods of functioning and income of the fund. The paper is also a survey of the net asset value per share of the fund NAV (net asset vallue), the total rate of return of open investment funds (total rate of return of open investment funds) and the rate of total yield closed-end investment funds (rates of total yield closed-end investment funds). The aim is to point out the advantages and disadvantages of investing in mutual funds in the capital markets of Serbia, and the possibilities of realizing returns on invested funds.
Keywords: open-ended investment fund; closed-end investment fund; the NAV (net asset vallue); rate of return; risk
THE ROLE OF INVESTMENT FUNDS IN CAPITAL MARKET DEVELOPMENT
Dragan Milovanović
Abstract: Decline in trust and the withdrawal of foreign investors from the Serbian capital market contributed to the decline in value of turnover on the BSE. Increased risk of investing in the Serbian capital market focused investors on less risky investments, and in that respect and less profit. In such circumstances, the Serbian capital market, the investment alternative is to invest in mutual funds. Mutual funds carry a slightly higher risk than savings in the bank, but as a rule, and higher yields on invested funds. The paper analyzes investment funds in the capital markets of Serbia, in terms of types, methods of functioning and income of the fund. The paper is also a survey of the net asset value per share of the fund NAV (net asset vallue), the total rate of return of open investment funds (total rate of return of open investment funds) and the rate of total yield closed-end investment funds (rates of total yield closed-end investment funds). The aim is to point out the advantages and disadvantages of investing in mutual funds in the capital markets of Serbia, and the possibilities of realizing returns on invested funds.
Keywords: open-ended investment fund; closed-end investment fund; the NAV (net asset vallue); rate of return; risk
